U.S. Homeowners to Benefit from Groundbreaking Home Energy Loan Financing Platform

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TO BUSINESS, ENERGY, AND NATIONAL EDITORS:

U.S. Homeowners to Benefit from Groundbreaking Home Energy Loan

Financing Platform

SAN FRANCISCO, April 9, 2014 /PRNewswire-USNewswire/ -- Homeowners

across the United States will benefit from an innovative

public-private partnership announced today to make it easier to find

lower-cost loans for home energy efficiency improvements. Leading

institutions from the public and private sectors today announced the

formation of a national financing platform that will for the first

time bring low-cost, large-scale capital to government and

utility-sponsored residential energy efficiency loan programs - which

can be utilized by homeowners in states that participate.

The Warehouse for Energy Efficiency Loans (WHEEL) opens the

residential energy efficiency finance market to large institutional

investors - bringing low-cost capital to loans for home energy

efficiency improvements. Loans will be made to consumers and the

investment grade securities available to institutional investors.

(Additional information about the program can be found at

wheel.renewfund.com)

WHEEL is the product of a years-long collaboration between national

leaders in the worlds of finance and energy, including Citi; the

Pennsylvania Treasury Department; Renewable Funding; the Energy

Programs Consortium; National Association of State Energy Officials

and the U.S. Department of Energy. The Commonwealth of Kentucky has

also joined the WHEEL program as a charter member. In addition, key

financial support for the project was provided by Energy, Ford,

Rockefeller, Surdna and William Penn Foundations.

"WHEEL is designed to serve a $200 billion unmet need for financing in

the home energy efficiency market," said Cisco DeVries, CEO of

Renewable Funding. "Now, we are making it easier for consumers and

contractors to utilize affordable loans, supported by their state or

utility, to make energy efficiency improvements. We are also making it

easier for investors to find a path into this important and urgently

needed market."

WHEEL makes financing programs simple for states, utilities,

contractors, and homeowners. Approved local contractors will offer

low-cost financing directly to consumers. The loans will be purchased

by Renewable Funding with a credit facility provided by Citi and the

State of Pennsylvania Treasury, aggregated into diversified pools,

securitized, and sold to institutional bond investors, thereby

replenishing the capital to be loaned to consumers.

WHEEL builds onPennsylvania's successful Keystone HELP Loan program.

The State of Pennsylvania has supported low-rate loans for energy

efficiency improvements since 2006. These loans, originated by AFC

First Financial Corporation, an energy efficiency lender, have helped

more than 13,000 homeowners reduce their energy use - and provided the

robust performance data necessary to launch the national WHEEL

program.

"WHEEL demonstrates that innovative thinking by government, especially

in partnership with the private investment sector, can save homeowners

money, help the economy, create jobs, and reduce greenhouse gases,"

said Pennsylvania Treasurer Rob McCord, one of the architects of

WHEEL. "WHEEL, which will increase access to low-cost capital for

energy efficiency investments, is the culmination of a careful

strategy by the Pennsylvania Treasury to develop a national capital

market for energy efficiency loans. Capital market resources will now

provide more loans to homeowners to improve their homes, save money,

and reduce their energy bills."

Mark Wolfe, Executive Director of the Energy Programs Consortium,

added that "WHEEL represents an important milestone for state energy

programs because it will provide a platform specifically designed to

work with state and local government-sponsored programs as well as

provide attractive pricing to support the further development of those

programs."

Key factors driving this new financing platform include:

-- McKinsey & Co. reported in 2009 that the U.S. could reduce energy

consumption in homes by 28% by 2020, with an upfront investment of

$229 billion.

-- States and utilities are expected to double spending on energy

efficiency rebate and incentive programs by 2025 - to approximately

$15.6 billion.

-- That leaves more than $200 billion in unmet need for financing to

make homes more energy efficient. By tapping into the asset backed

securities (ABS) bond market, WHEEL will help meet that need.

Taking the WHEEL concept to states across the country required an

innovative capital partner. Today, Citi announced a warehouse

facility for Renewable Funding to purchase loans to facilitate a $100

million ABS medium term note program that will create bonds that can

be sold to institutional investors.

Marshal Salant, Head of Alternative Energy Finance at Citi added,

"This exciting public-private partnership will create a new,

large-scale source of capital to help homeowners finance energy

efficiency improvements, and tap into the unmet demand from

institutional investors wanting to invest in this important new

market."

"Energy efficiency is the cheapest and often the fastest way to reduce

carbon emissions," said David Danielson, Assistant Secretary

for Energy Efficiency and Renewable Energy, U.S. Department of Energy.

"Through the Energy Department's Better Buildings Initiative,

innovative financing solutions are helping states, utilities and

consumers implement cost-effective efficiency improvements that save

money on energy bills and build a more sustainable, cleaner energy

future."

Residential buildings account for 22% of all energy use, according to

the Harvard University's Joint Center for Housing Studies. Older

homes are significantly more inefficient than new homes. Bringing

homes built prior to 1970 up to the efficiency standards of newly

constructed homes would cut total residential energy use by 10

percent.

"WHEEL is the single biggest financing innovation we've seen to help

states achieve aggressive goals to reduce energy use," said Mark

Wolfe, Executive Director of the Energy Programs Consortium. "We

strongly urge other states to join Pennsylvania and Kentucky in this

exciting new program."

"As one of the first supporters of both WHEEL and the Energy Programs

Consortium, we saw the potential to change the way states work with

the private sector to deliver residential energy efficiency programs

and financing. It's a leap, not a step, forward and yet another

example of how states can utilize U.S. State Energy Program funds and

private resources to catalyze innovation in energy financing," said

David Terry, Executive Director of the National Association of State

Energy Officials.

In addition to its energy and environmental benefits, energy

efficiency is a strong economic development tool. Every $1 million

invested in energy efficiency improvements creates 20 jobs - most of

which are local construction jobs. Important home energy efficiency

improvements include insulation, windows and doors; and energy

efficient heating, ventilating and air conditioning systems. In the

longer term, it is estimated that investment in energy efficiency and

advanced technology would support and increase of 1.3 to 1.9 million

jobs by 2050.

"Kentucky Housing Corporation has been a great partner and a

recognized leader among statewide home performance programs," said Len

Peters, Energy and Environment Cabinet Secretary. "The addition of

WHEEL enhances the program by providing low-interest financing for

homeowners to make energy efficiency improvements. This also creates

jobs for builders, remodelers and equipment providers-jobs that remain

within the state."

Renewable Funding Renewable Funding specializes in design,

administration, technology, and financing solutions for clean energy

upgrade programs. Since 2008, the firm has worked with over 200

clients across the U.S. to structure and administer residential and

commercial financing programs.

Pennsylvania Treasury The Pennsylvania Treasury Department is the

custodian for more than $100 billion of public funds on behalf of the

Commonwealth of Pennsylvania. Since 2006, the Department has provided

capital to the Keystone Home Energy Loan Program, which serves as a

model program for WHEEL.

Citi Citi, the leading global bank, has approximately 200 million

customer accounts and does business in more than 160 countries and

jurisdictions. Citi provides consumers, corporations, governments and

institutions with a broad range of financial products and services,

including consumer banking and credit, corporate and investment

banking, securities brokerage, transaction services, and wealth

management.

Additional information may be found at www.citigroup.com | Twitter:

@Citi | YouTube: www.youtube.com/citi | Blog:

http://blog.citigroup.com | Facebook: www.facebook.com/citi |

LinkedIn: www.linkedin.com/company/citi

Energy Programs Consortium EPC is a nonprofit organization based in

Washington, DC. EPC is a joint venture of National Association of

State Energy Officials, representing the state energy policy

directors; National Association of Regulatory Utility Commissioners,

representing the state public service commissioners; and National

Energy Assistance Directors' Association, representing the state

directors of the Low-Income Home Energy Assistance Program and the

National Association of State Community Services Programs,

representing the state weatherization and community service programs

directors.

AFC First Financial Corporation Founded in 1947 and based in

Allentown, Pennsylvania, AFC First is a national leader in

energy-efficiency and renewable energy lending and program

management. Nationally, it operates its EnergyLoan@ program, in

partnership with states, utilities, manufacturers and municipalities.

Programs are offered through a network of over 5,000 approved

contractors. AFC First is the nation's first private, non-utility Home

Performance with ENERGY STAR sponsor, and the original approved

originator and servicer for WHEEL.

Kentucky Housing Corporation Created by the 1972 General Assembly, KHC

is a self-supporting, public corporation of the Commonwealth of

Kentucky administratively attached to the Finance and Administration

Cabinet. A portion of Kentucky Housing's funds are derived from the

interest earned through the sale of tax-exempt mortgage revenue bonds.

From these proceeds, Kentucky Housing has made homeownership possible

for more than 86,000 Kentucky families.

SOURCE Warehouse for Energy Efficiency Loans (WHEEL)

-0- 04/09/2014

/CONTACT: Edit Ruano, (510) 550-8176 (O), (530) 305-8176 (C)

CO: Warehouse for Energy Efficiency Loans (WHEEL)

ST: Pennsylvania Kentucky

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